In a recent development, Bernstein analyst Toni Sacconaghi has upgraded Apple (AAPL) stock from market perform to outperform, stating that it is time to "buy the fear." Despite facing multiple challenges this year, Apple stock has managed to climb 2.5% to close at $173.50 on Monday.

Sacconaghi believes that concerns surrounding Apple's weakening performance in China are more cyclical than structural, and anticipates a strong iPhone 16 cycle driven by replacement cycle tailwinds and new generative AI features. The analyst has set a price target of $195 for Apple stock.

Investors are eagerly awaiting Apple's fiscal second-quarter results, set to be announced on Thursday. Analysts anticipate the company to report earnings of $1.50 per share on sales of $90.3 billion for the March quarter. Comparatively, in the same period last year, Apple earned $1.52 per share on sales of $94.8 billion.

Of particular interest will be the performance of Apple's iPhone sales, especially in China, amidst reports of weak demand. Additionally, investors will be looking towards the company's services business, which is expected to be a bright spot in the March quarter. The sales performance of the recently launched Apple Vision Pro headset will also be under scrutiny, as it hit stores on February 2.

Capital return plans will also be in focus, as Apple traditionally updates them during its March-quarter report. Morgan Stanley analyst Erik Woodring predicts a "down-the-middle" capital return announcement, including a $90 billion increase to Apple's current stock buyback authorization and a mid-single-digit increase to its quarterly dividend, bringing it to 26 cents per share.

Notable upcoming catalysts for Apple stock include a product launch event scheduled for May 7, where the company is likely to unveil new iPad tablets. Furthermore, on June 10, Apple will kick off its Worldwide Developers Conference (WWDC), where it is expected to outline its plans for generative artificial intelligence.

Apple stock currently holds a Composite Rating of 56 out of 99, according to IBD Stock Checkup. The Accumulation/Distribution Rating sits at D-, indicating institutional selling of shares.

Investors eagerly await Apple's fiscal Q2 report and hope for positive news to boost the stock amidst the prevailing headwinds.